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Democrat Division Delays Crypto Legislation as Market Watches
Senator Chuck Schumer is advising Democrats to withhold public support for the GENIUS Act, a proposed U.S. stablecoin law. He reportedly seeks to maintain negotiating leverage with Republicans, especially concerning Tether, the dominant stablecoin issuer.
Earlier this year, Democrats introduced amendments addressing illicit finance and national security risks. One suggested banning foreign stablecoins like Tether, which is based in El Salvador. Republicans rejected the amendment, yet the bill passed the Senate Banking Committee.
However, internal disagreements are now stalling its progress. Crypto-friendly Democrats, including Senator Ruben Gallego, are voicing doubts about the final bill language. Political tensions flared during a Senate Democratic lunch, signaling a growing divide over digital asset regulation.
Market Impact: Why the GENIUS Act Matters
The GENIUS Act could redefine the regulatory framework for stablecoins in the U.S. If passed, it would influence how digital dollars operate. A ban on foreign stablecoins would impact Tether and reshape the broader crypto market. This delay introduces uncertainty as the Senate approaches a full vote before Memorial Day.
As the world’s most-used stablecoin, Tether remains central to global crypto liquidity. The bill’s fate will directly affect its U.S. usage. With policymakers clashing, the crypto industry remains on edge, anticipating regulatory shifts that could transform the digital finance landscape.